There are many insurance myths floating around, and most of them have been around for years. We want to respond to these myths with clear information, so that you can make educated decisions about your insurance purchases.
Myth One-Having two agents is better because they keep each other competitive.
Having two agents duplicates effort and can create coverage gaps and/or duplication. For example, there are certain coverage’s that can be included under a liability policy as well as under an auto policy. If you have two agents, who coordinates coverage? One agent is better able to manage your entire insurance program.
Myth Two-The lowest premium is the best option.
Premiums are determined by a combination of exposures and coverage. If you select the lowest premium you may be missing needed coverage. For example, the lower premium may not include replacement cost coverage on buildings and equipment.
Myth Three-Buying from a national company is always better.
Don’t be mislead by entertaining advertising. Most national agents only represent one insurance company. They can’t shop your account to determine the best combination of price and coverage.
Myth Four-The Internet is a great place to get good insurance deals.
Low cost Internet insurance may allow you to select the coverage and limits you think you need, but in most cases you end up with a limited and inadequate program. Typically, you may only realize these limitations after you have an uninsured claim.
Myth Five-Umbrella insurance is only for high net worth individuals.
The cost of personal umbrella policies are so competitive it is well worth it to consider this option.
Myth Six-The Medical Payment portion of my homeowners insurance will cover injuries to me and my family.
Medical Payments, is a feature of most standard home insurance policies. It is there to protect you in the event that someone other than you or your family (a neighbor, friend, etc) gets hurt on your property.
Myth Seven-All my guns and jewelry are automatically covered in my homeowner’s policy.
There are limits on the amount of coverage you can receive for valuables such as jewelry, guns, furs, etc. For example, most companies put a cap of $1,500 on total jewelry lost during a burglary of your home. If you find that your jewelry is valued over $1,500, you will have to schedule it separately.
Myth Eight-Flood insurance is only for people who live in a high risk area.
The only people who may not need flood insurance are those who live on top of a mountain. Flood and rising water can affect almost everyone.
Myth Nine-I don’t need life insurance because I can get it through my employer.
Don’t count on your employer to take care of all your needs. You may change jobs or you may have additional assets that are unaccounted for through your employer life insurance policy. Remember you typically can not take these with you at retirement so you are better off to have your own separate policy in force.
Myth Ten-There is not anything I can do to manage my insurance costs except shop price.
There are many things you can do to reduce your premiums; here are a few:
- Consider increasing your deductibles
- Maintain good credit
- Consider the vehicle when make a purchase, some are more expensive to insure
- Add smoke and security alarms to your home or office
- Ask us about the many different discounts offered by our insurers